US Dollar Now Worth 10% More in Cuba

President Miguel Diaz Canel announced the boost to the US dollar value in Cuba, but said products would still be sold in the two local currencies.

Cuba lifts 10-per-cent tax on US dollars, broadens currency use

HAVANA TIMES – Cuba on Thursday said that it will eliminate a long-standing 10-per-cent tax that it put on the official US dollar exchange rate and accept the use of the greenback in some stores, reported dpa news.

“This is a measure that benefits all Cubans inside and outside the country,” Cuban Economy Minister Alejandro Gil said on state television.

Cuban authorities acknowledged that the decision, designed to bring in more hard currency, was fuelled by the Covid-19 pandemic and the loss of tourist revenue. They stressed that the measure did not represent a “dollarization” of the country’s economy.

The 10-per-cent tax has been in effect since 2004. It ended up promoting an informal parallel market.

From Monday, about 72 of the 4,800 state-controlled stores in Cuba will be able to sell food and toiletries in US dollars, although not in cash but via bank cards connected to US-dollar accounts.

Sales of household appliances and cars had already been offered in the US currency at selected stores since last year, as part of efforts to counter the use of dollars on the ilicit market.

President Miguel Diaz-Canel assured the Council of Ministers that the new measures did not disadvantage the large sector of the Cuban population that does not have access to the dollar.

The sale of products in national currency would go on, promised Diaz-Canel.

12 thoughts on “US Dollar Now Worth 10% More in Cuba

  • July 21, 2020 at 8:12 pm

    That will obviously depend on the mark-up on the products which runs from 150-240% in the normal state/army stores.

  • July 21, 2020 at 5:34 pm

    Both Cuban currencies have zero or no value on the international markets. Hence the prices on imports were so much more expensive in CUCs vs what you can find in Mexico, Canada or US. Now that you can pay in USD the prices on imported simple consumables should go down and be similar to Mexico in those damn state run stores.

  • July 21, 2020 at 12:05 pm

    No jay, the Cuban dictatorship assumes that Canadian tourists to Cuba regard themselves as fortunate. There is sound reasoning behind that view.

    Some forty years ago, then Prime Minister of Canada Pierre Elliott Trudeau, on a visit to Cuba, presented Fidel Castro with $5 million (quite a lot of money at that time) and a further $5 million loan interest free. (All of it Canadian taxpayers money). When doing so, he gave a speech expounding the virtues of the totalitarian regime and ending:

    “Long live Cuba, long live President Fidel Castro.”

    Further grovelling admiration was given by Prime Minister Justin Trudeau, son of the above PET, when he wrote to Raul Castro in 2016 following the death of BIG brother Fidel. Justin Trudeau wrote:

    “It is with deep sorrow that I learned today of the death of Cuba’s longest serving President.” he continued:

    “On behalf of all Canadians, Sophie and I offer our deepest condolences to the family, friends and many, many supporters of Mr. Castro.” there followed:

    “I know my father was very proud to call him a friend and I had the opportunity to meet Fidel when my father passed away. It was also a real honour to meet his three sons (actually Fidel had seven and possibly eight by four women) and his brother President Raul Castro during my recent visit to Cuba.”

    So jay, in consequence, the Castro regime has sound reason to assume that Canadians consider themselves fortunate to be able to visit and admire the communist totalitarian state. Don’t criticize, be grateful for their hospitality!

  • July 19, 2020 at 8:25 pm

    Why does it loose so much? Most currencies can be exchanged for a 3% fee. Currently the Canadian dollar is listed at .735 CUC and at .735 USD. Please explain. Thank you..

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